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Gm 16, Cramer 11, Jim 10, Us 8, Ukraine 7, Darden 6, Europe 5, Russia 5, Paccar 5, At&t 5, S&p 4, New York 4, Ge 4, Jim Cramer 3, Nathan 3, Craig 3, Scottrade 3, Oklahoma 3, Sydney 2, Tennessee 2,
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  CNBC    Mad Money  

    March 4, 2014
    6:00 - 7:01pm EST  

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they're on-time. everything they are doing seems to be right. h.a. is going higher. >> mahalo. >> i'm melissa lee. at 5:00 for more "fast." "mad money" with jim cramer starts right now. . . my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i just want more days like today. my job is not just to entertain but to coach and teach you. so call me at 1-800-743-cnbc. we have to learn to stop taking counsel of our fears and start taming them or we'll be out of the market on beautiful days like today with the dow soared 228 points, the s&p fell to
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1.53%, and the nasdaq skyrocketed to 1.75%. s&p new highs. we need to remember that sometimes opportunities come along, opportunities like yesterday that we must act on simply because they amount to a one day sale that gives us great prices. >> buy, buy, buy! >> let's use today's session to highlight some trues about investing. i spent a ton of time talking about major themes i think can work. i've been doing it for many years. themes where you can buy stocks on weakness, provided that weakness has nothing to do with the theme in question. or the stocks that participate in it. how does this work in reality? consider some of the overarching themes i identify in "get rich carefully." they have been fabulous buys. first, there are the stocks that capitalize off the three incredibly powerful trends in technology. facebook, google and salesforce.com, which celebrates the 15th anniversary as a
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company on friday and is a huge buy down here. just ask yourself. did the turmoil in europe have anything to do whatsoever with this kind of technology? did the ukraine crisis somehow impair its growth? did it thwart the process of connectivity, the essence of social, mobile and the cloud. i don't think so. in fact, i could make the case the need, a need for more information and therefore that is furthered by events like this in far away places where people might need to be in touch with millions of others, perhaps through the app on their facebook pages or facebook itself. these different devices are amazing. for instance, you can use twitter as an instant source of news for ukraine/russia. yet, all those stocks were hammered yesterday. it made no sense. second theme, biotech. last night, you heard from the ceo of isis pharmaceuticals.
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i don't know about you, but i felt his story was incredibly compelling stuff, whether it be formulations or platform to combat a horrible disease that makes babies too weak to stand straight. yes, it's called floppy baby disease. or perhaps most helpful, a radical way to treat type ii diabetes. ukraine sensitive? no. how about the possibility some sort of contagion from europe. remember, the european markets were down 2%, 3%, particularly germany. no exposure that i can think of. same thing goes for celgene, regeneron, the four horse men of the pharma. they are not stopped by a second crimea war, neither are the combatants that have created the incredible drugs to try to stop them. then there's the oil and gas revolution that we've focused on for ages. could this be damaged by the incursion into ukraine?
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hardly. benefit from tensions between russia and western europe. they benefit. consider the company we have on tonight. wow, did you see it today? continental resources. the biggest landowner in the bakken shale in north dakota. here's a company that directly benefits from turmoil that could restrict energy exports from russia, driving up the price of crude worldwide. it know it seems a little illogical given that continental's crude goes to gasoline in this country. remember gasoline in this country is priced off the inflated oil price set in europe, not by the domestic price here. and that means bakken oil is even more valuable to east coast refineries than ever because of what was happening with ukrainian/russian tensions. continental got pulled down by the power of the futures. and they're so all encompassing, they crush every stock right or wrong. toe tam opportunity, one that should have been seized, same with the natural gas stocks. our natural gas when it's going to be shipped to europe could help free the west from nat gas
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tyranny that russia exerts. in other words, it was a positive. how about theme number four. i think the issues over ukraine served to remind us how the asset class of stocks are weak and people not as enriched by a rally. so to use a prime example, we are more, not less likely to shop for discounts. more, not less likely to buy generics. to go to rite aid, cvs and buy the knockoffs. and sure enough, another great stock today. do you think health takes a vacation when putin stares down the ukrainian government? do we want to have a less healthy diet? do face yaufrs suddenly cause us to drink soda, eat fattening foods? no, of course not. what a terrific opportunity yesterday to buy the stock of
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white wave foods. needed -- but i said you couldn't pull the trigger. why couldn't you pull the trigger? you needed it to cool off, to go down a little. preferably because of some event. how about the black sea naval fleet. did that black sea naval craving make fewer people eat at which i poe chipotle? it made you remember why you were buying the stock if the interview with ray wise didn't do so last friday. yes, kiev, historically, ukraine, known as the bread basket for europe. but it doesn't impact chipotle bread. it doesn't impact like anything food in our country. you know, i always preach you should wait for a pullback. and when you get one, you have
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to at least have something to buy. and that's what the themes are for. that's why we bought, not sold, from my charitable trust yesterday. all these themes are shopping, precisely when you start buying. when you buy when you get an argentinian selloff, turkish dust-up. a crisis in north korea, syria, egypt. these themes even work during the periodic political bloodletting in washington. which brings me to the next lesson. the 35 years with only a few exceptions, there's always been a better time to sell than during a big down day caused by extraneous weakness. i've always said that panic, what is panic? i saw it @jimcramer on twitter. panic is not a strategy. yet panic is precisely what we had on monday. as warren buffett told us in the calm of yesterday's morning. does the business you're selling actually lose value because of the events overseas? the answer is most likely no. of course there are times when
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the value of the asset is impaired. one of the reasons why i backed away from bank stocks, so many financials on this show, they are often inner linked to events that so many of the stocks have no connection to. there are a lot of hidden tie-ins and collateral damages that don't exist in so many other sectors. just the fact of life. and while i like some of the banks as part of the portfolio, it's the area i have the least confidence would be unaffected by what occurred or what could occur because these stocks are so opaque. so here's the bottom line. the next time we have some big overseas crisis, remember as long as the s&p futures and the ets continue to dominate the underlying stocks in those indices, you're going to get some terrific bargains in individual stocks. you just need to have the courage and conviction to take them. let's go to barry in california, please, to start. barry? >> hey, jim, i wanted to give
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you a boo-yah here from southern california, how are you doing? >> real good, how about you, partner? >> i'm doing great. thanks for helping out the small investor. i'm an actionsalert plus subscriber. >> thank you so much. >> caller: the question i have for you is on popeye's louisiana kitchen, they recently reported they hit the lower end of the earnings per share revenue estimates and guided lower, but the stock is up. what am i missing on that, jim? >> i think everyone knew the things were going to be soft. i think you have to take a longer term view. had some bad weather, but the chain is really on fire as they remodel. i think it's a terrific stock. it's up 8% for the year and i think it goes higher. paul in texas, please, paul? >> caller: boo-yah, cramer. >> boo-yah. >> caller: the stock has dropped 8% today. i want to talk to you about mdr, mcdermott international. the company's planning to divest
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the loan core assets, and guidance for the foreseeable future. what can you tell me, jim? >> i mean, i've got to tell you, everybody downgraded this thing today. i thought the worst was over. but when you suspend guidance like they did, that is just shattering to your confidence. so clearly the worst was not over. i thought we had a bargain in that one. we did not. it can probably go lower. all right. we saw the investing in action today, all you needed was some courage and conviction that comes from being involved in longer term themes in order to be able to take advantage of the bargains. "mad money" will be right back. coming up -- flat tire? general motors hit a pothole to start the year. trading down more than 10%. tonight, cramer's kicking the tires of this ticker to see if the company could be ready to shift things into high gear. and speaking of gears, cramer's
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found one market that could be ready to leave the market in the dust. plus, natural solution? could the turmoil in ukraine help ease restrictions on exporting our most abundant source of energy? cramer's drilling down in our own backyard with the ceo of continental resources. all coming up on "mad money." >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪
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in this crazy roller coaster of a market, we want to find companies we know are doing well with stocks that have been slammed lately. hey, that's how you find bargains, even on a manic up day like this one. what exactly fits these criteria? what company just announced dramatically better than expected numbers, numbers not reflected in the stock price that's been languishing for the last two months? how about general motors?
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yesterday, general motors promoted february sales well ahead of what the market was anticipating. companies saw a .9% drop when analysts were looking for a gut wrenching 7.7% decline. not only that, february was the automakers' best month in some time. in january, gm sales fell by 12%, in december down 2.6%. meanwhile, the company's trounsing the competitor ford, which saw worse than expected 6.1% decline in sales last month. that's why on an otherwise hideous day for the market, gm managed to close in the black yesterday. and again, why it rallied 72 cents and 2% better than the s&p. even though gm's business is improving, the stock is still down 10% for 2014. despite the fact that after today's action, ford's basically flat and the s&p 500 is now up for the year. i think that that disparity could make for a high-quality opportunity. hence why we bought more gm for the charitable trust yesterday. it's also why we're going off
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the charts, take a closer look at general motors. he's a terrific technician, options expert who is the editor of riskreversal.com, as well as being a fellow contributor at cnbc and the man who runs the street.com, actionsalertplus.com options letter. as i tell you in "get rich carefully," you should never use the charts to pick stocks, but when you marry them to the analysis i talk about on "mad money" and show you every night, then the charts can be a fabulous tool for helping you time your buys and sells. fundamentals and timing. best price, that's the sort of dual analysis we're going to do with gm right now. i can demonstrate how portfolio managers think. before we get into the reading of the technicals, i'll tell you why i like the fundamentals. gm in particular rallying 41%. but then as the new year began, took a turn for the worst, weather?
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who knows? stock got pole axed. now seems like things could be picking up again. from the february sales numbers that were released yesterday, we know general motors' market share in trucks increased 2% over the previous month. that's a tremendous increase in a month. we now know the company is being disciplined about sales incentives, a big positive because these incentives can eat into the margins. more than half of gm's light duty pickup trucks were premium models and the incentives were basically in line with what we saw in january, which is much better than many people had feared in terms of the big picture, the company's management still thinks we can build 16 to 16.5 million cars in north america this year. and if they're right, then this will be another good year for gm. plus, there's the fact that gm no longer stands for government motors, sold the remaining stake in the company back in december, something that allowed the company to finally start rewarding shareholders with a buyback and a notoriously b.i.g. dividend. oh, and did i mention the stock is cheap? selling for less than ten times
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earnings even though there were dramatic cuts over the last few months, cuts i think will be reversed given how low the discounting is and how big the profits can be. that's the fundamental story. now let's talk the view of the technicals. take a look at the daily chart over the last year. you can see last year the stock advanced, well, let's say pretty methodically. with gm breaking out on high volume last november and then staying that way in december. but then, 2014, look at this, upturn. well, clearly broken down, hasn't it? that's scared a lot of people. according to nathan, for gm to rebound from here, the stock needs to at least hold at this 34, 36 area spending so much time consolidating while the averages march to new highs. if gm breaks below 34, that's $2.86 below where it is right now. then nathan says it could be declining to the june lows of 31. not so hot. at the same time, though, look at it will daily chart going back six months.
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now, nathan points out that the stock faces a ceiling of resistance just above the r50-day moving average at $38.45, or $1.60 above where it is right now with a second ceiling of 39. however, if the stock can climb above 39, then the next stop could be previous all-time high of just below 42. since general motors had a significance resistance up about five points from here and floor of support, you might just say, i don't know, risk/reward, five up, five down, that's even. and nothing that appetizing. however, nathan believes the picture is more complicated than that. his reasoning, sentiment. gm has underperformed the market and the peers. ford, pretty dramatically over the last few months. because of that, nathan thinks the negativity is baked into the stock. anything positive is likely to propel the stock higher. i've got to tell you, i agree with him. this one down 10%, doesn't seem
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right to me. take a gander at this chart which shows general motors and a yield on the u.s. treasury bonds. gm in blue here and the ten-year in red. nathan points out there's a strong correlation between the performance of gm stock and the yield on the ten-year. right now the ten-year yields 2.7, that's been very negative for gm. you can see the correlation. and when it rallies closer to 3%, that's been very positive. i always think you should keep an eye on the ten-year. but that's especially the case if you're going to own gm. today, the ten-year went down hard in price and up very big in yield. so the yield is -- went up a lot. and that could be a very good sign for gm if it continues. pension obligations go down dramatically if the yield goes up to 3%. right now options in general motors is cheap. april and the money call options rather than the common stock. i think the common work just fine. but if you're willing to take on extra risk in order to rack up additional reward, i can bless
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the strategy. here's the bottom line, the fundamentals of general motors as interpreted by me and the charts of general motors as interpreted by dan nathan both suggest the idea that this right now is a good time to buy gm. i think the downside is limited, especially with that bountiful 3.25% yield and the upside could be impressive as the stock plays catch-up to the rest of the market and its own sector. it's still a place to go in a market that could be right back on track after cooler heads prevail. after the break, i'll try to make you even more money. coming up -- keep on trucking? with the president poised to introduce new emission standards, which trucking play could be about to move into the fast lane? don't move, cramer's checking under the hood next. ♪
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in a volatile market like this one, where one day we're down hundreds of points and next day up hundreds of points. you need stocks to count on. that's especially true ahead of friday's big bad nonfarm payroll number from the labor department. let me tell you about a raging bull market that's still available for you to exploit. the bull market in trucks. couple of weeks ago while we're
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taking a break in order to make room in the schedule for olympic curling, the "new york times" published a massive endorsement of the truck stocks, wasn't even the business section. the story was titled, and i quote, obama orders new efficiency for big trucks. and it was all about how the president plans to use his executive authority to push through tough new fuel standards for heavy duty trucks over the next couple of years. standards designed to reduce carbon emissions. and the thing about new fuel standards, they're going to pretty much force trucking companies to buy new vehicles that can comply with these new standards. that's terrific news for truck makers, as well as cummins, the big maker of truck engines i own for my charitable trust. more important, these new regulations are really just icing on the cake for long-term truck bull market already heating up anyway. first of all, trucks still one of the few areas of the economy that haven't recovered back in the pregreat recession levels. as of last year, the industry was 19% below the peak. that has to be the highest.
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even higher than housing. that may sound like a negative, but it's actually a positive. because it means the truck makers have a lot more room to improve. and when the numbers improve, that's what's sends stock higher. second, the average class truck in america is 6 years old. we should see a substantial step-up in these huge trucks replacement cycle. and the new pollution standards, the obama administration's working on, still one more thing that's going to boost demand for these new big trucks. plus, right now, used trucks are commanding high prices. hey, think about that, doesn't that make it more attractive to buy new ones outright? i think it does. no wonder we've seen two straight months of terrific strength in class a truck orders, the heavy duty trucks used for over the road and off highway applications. in december, orders up staggering 49%. that's much bigger than the seasonal uptick of about 5%, 6% you typically get in december. and in january, truck orders
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rose by 22%. again, much stronger than the usual 2% or 3% increase we've gotten used to. which brings us to the big question. thousand do we play this resurgent bull market in trucks? before i tell you the best way to play the pending truck renaissance, let me say, i wouldn't necessarily buy any of these truck names right here tomorrow. you come in, cramer likes these truck names, that is not the way it goes here in cramerica. the truck stocks have roared. and if you pay out for them, you'll be chasing, we do not chase here on "mad money." so just keep in mind that this is about having names on your shopping list as i said at the top of the show. you can circle back to the next time we get a market wide selloff. and look, a lot of people feel we're going to get one on friday. now you're getting ideas to buy. with that caveat out of the way. while it's by far my favorite truck play in general, the best way to play a specific rebound
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in north american heavy duty truck sales is actually pcar. a maker of commercial trucks that gets 40% of the sales from the united states. why? 60% of the volume is indeed in these heavy duty class-a trucks and the area that's really heating up right now. the most exposure to the hottest part of the truck bull market. if the north american truck market rebounds like i'm expecting, then the earnings could end up dramatically higher than the analysts are anticip e anticipating. $1.22 of incremental earnings per share through 2014. considering the company's only expected to earn $3.61 for 2014. i'm expecting an upside surprise and that should drive stock higher if we get it. the other reason i like it because the company has benefitted from the main
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competitor navastar. it's had a ton of execution issues ever since the great recession. here's a classic example. banked heavily on a new technology and turned around and said wasn't, was not compliant with new emission standards. so the company had to backtrack and work to incorporate engines from cummins into the new truck designs. these new cummins powered trucks are now coming to the market. but lost an astounding 13 points of market share in north american class-a trucks and that market share was gobbled up by pcar. now it sells for 18 times earnings, it's got 13.5% long-term growth. do you know trucks grow that fast? it's still not that expensive versus the growth rate especially when you consider the stock has rallied 21% in the last month. i want you to wait, though, for a better entry point. down two or three points from here, i would start with the paccar buying. and remember, think about it, the kind of action yesterday, it occurs all too often. why not wait for the next down
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train and climb onboard. let me make one thing really clear. you must avoid navastar. you have to. >> don't buy, don't buy, don't buy. >> the company has made way too many missteps. i looked at it from time to time, think it's got to be bottoming. stay away. last but not least, while paccar has the most exposure, cummins is one of my favorite ways to play all cyclical stocks. best of breed maker of engines globally. big china business, has one of the best management teams of any machinery company out there. company had a tough year in 2013. i think they've reset expectations, i think they'll be able to beat the numbers consistently this year, hence why the charitable trust owns it. here's the thing, only 26% of cummins sales are directly related to heavy-duty trucks. and that's the segment of this market i'm talking about and i'm banking on right now.
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cummins is the better company, that's hands down, no one would tell you otherwise. if you want the bull market, paccar's the way to go. the market was already rebounding, with president obama poised to introduce the new emission standards, we could see a wave of new truck buying over the next couple of years. for heavy-duty trucks in particular, paccar is the way to go. put it on the shopping list, it trades wildly. but for engines in general and for a return to worldwide growth, including china, which i think is going to happen in the second half of 2014, stick with cummins. can i go to joyce in minnesota? joyce? >> good afternoon, jim cramer. i want to know you're the best asset we have. >> thank you. >> caller: you are a super hero from albert lea, minnesota. i belong to a stock investment club for ladies. >> i love that. >> caller: and it's called wigs. that tells you what, you know, it's kind of older. okay. iep.
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iep, that is with carl icahn. >> right. >> caller: what do you think? because we -- i went in, i always buy before my ladies just in case. and i bought in at $10, at $35, went up to $44, and then it sold off so fast, i got out. >> yes. >> caller: but we're thinking, he's a billionaire. >> thank you for these great companies. you are tagging along with a billionaire. you don't necessarily get everything he's doing. but i have sanctioned it. why? because i really do believe in carl icahn. if you have a vehicle that tracks what he's doing. i think you'll be fine. can i go to -- and emphasis, kind of there. can i go to norbert in new york. >> caller: boo-yah, jim. >> boo-yah. >> caller: i'm talking about tower, symbol towr. >> oh, boy. you know, the structural metals
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business, this stock has moved too much. it has moved too much. i'm not going to endorse the stock up 21%. some of them are not doing as well. i'm going to say don't buy, don't buy. craig in georgia, craig? >> is this jim cramer? >> yeah, is this craig in georgia. >> yes, i know i'm from the south, we don't talk slow like a red neck down here, but boo-yah, how are you? >> great. how about you? >> caller: would you mind if i wish my son happy birthday quick? >> go ahead. >> caller: i want to wish my baby boy carson, he turned 1 month old yesterday. happy birthday, son. anyway. >> the reaction, maybe he identifies with the show. >> caller: well, listen, jim, the reason i'm calling in, i want to know what's going on with u.p.s. >> all right. craig, i'm going to tell you right now that stephanie link who is co-portfolio manager for action alert, we've got to pull
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the trigger of u.p.s. but we have to sell something first. u.p.s., well, now i'm froze in it. i think u.p.s. is going right to $105. you're terrific and i think i want to wish happy 1 month. i mean, what the heck. month, better than ever. all right. trucking. while i think it's going to keep on trucking, okay. cummins is great for worldwide growth, but for this particular bull market in heavy-duty class-a trucks, you need to buy paccar. stay with cramer. there's this kid. coach calls her a team player. she's kind of special. she makes the whole team better. he's the kind of player that puts the puck, horsehide, bullet. right where it needs to be. coach calls it logistics. he's a great passer. dependable.
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a winning team has to have one. somebody you can count on. somebody like my dad. this is my dad. somebody like my mom. my grandfather. i'm very pround of him. her. them. save you fifteen percent or more on car insurance.ould yep, everybody knows that. well, did you know the ancient pyramids were actually a mistake? uh-oh. geico. fifteen minutes could save you fifteen percent or more on car insurance. predibut, manufacturings a prettin the united states do. means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out.
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and there are no networks. you do your push-ups today? prepare to be amazed. [ male announcer ] don't wait. call today to request your free decision guide and find the aarp medicare supplement plan to go the distance with you. go long. it is time. it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, you say the name of the stock, i tell you whether to buy or sell. play until this sound and then the "lightning round" is over. are you ready ske-daddy? let's start with matthew in new york! matthew! >> caller: hi, jim, this is matt with the jersey shore boo-yah. >> nice, i like that kind of regional boo-yah. what's up? >> caller: i own some mortgage capital. >> el with, i don't typically
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like these stocks. this has a good yield. i think you're okay. but we don't really know what they own and how they own it, which is why i've been staying away from these. they've been a disaster for the last couple of years. michael in new york, michael? >> caller: hey, jim, boo-yah, boo-yah, boo-yah, boo-yah -- >> multi-talented gentleman. totally, what's up? >> caller: great day today. long time viewer, first-time caller. my question is on the proposed time warner merger. i think this merger will create value. what i did, i put on the day it was announced, selected that premium, sold them at 1.55, and then used that to buy some out of the money puts at 1.35. so creating a little strategy. a little straddle. my question is, would you think that a better play would have been going long and short?
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>> adele dazeem i do not like that the short puts. limit your upside and maximum downside. do not sanction that particular strategy. although i did like the -- singing? let's go to ed in new york. ed? >> caller: boo-yah, jim. thank you for taking my call. my stock is exact science. >> we like diagnostics! we stuck our neck off. we were right, they were wrong. george? >> caller: hey, boo-yah! >> yo, what's shaking, partner? >> you know what, it's a mediocre bank. i know everybody likes a $3 stock. look, i liked rite aid when it was at $3. bob in florida, bob? >> caller: boo-yah, jim, boo-yah. >> boo-yah. >> caller: i'm interested in a stock with a 5.72% yield, dividend growths for the last 29
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years and $32 a share. it's called at&t. >> i think it's fine, verizon's got better growth, doesn't have good enough yield. i will bless it, and i wish they'd come on the show because they have a good story and i kind of like them. and -- oh, no, we're not done yet. we're going to jeff in tennessee. jeff? >> caller: boo-yah, jim, from knoxville, tennessee. >> nice. >> i bought arku on a dip, and i think it could be another chipotle. >> what are you? are you from the industrial farm information bureau? are you from ifib? we don't want to touch that stock! chipotle up $30 is not my cup of tea. but chipotle is running rings around that kind of company's growth. i think we're not going to go to arco and we're not going to eat there either. and that is, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade.
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after going through a rough patch starting last fall, the independent oil stocks seem to be back and better than ever. take clr, the oil and gas
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exploration production company, that's the number one leaseholder in the bakken shale, perhaps the largest domestic oil find since the 1960s. in fact, continental is the poster child for the domestic oil revolution that one that i write about in "get rich care l carefulcarefu carefully." the company's ceo as part of our big bakken shale special where i went all the way out to north dakota in august of 2011 to check it out. continental resources giving you a 135% gain. even though the market cap of over $22 billion, it's a growth oil company. in the most recent quarter, increased by 35% year-over-year and it's still aggressively growing its reserves. the stock's up $4.90 in part because we learned that hamm, the ceo wouldn't have to split or give up the controlling interest in the company as part of his divorce, unusual reason to rally, but i'm glad that's something we knno longer need t worry about. find out more about how his
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company's doing and where it's headed. mr. hamm, welcome back to "mad money." >> hey, good to be with you, jim. good to be with you this afternoon. >> harold, yesterday, we had a demonstration of how hostage all of western europe is to russia. can we free ourselves of any country's, opec, russia's, any sort of their dominance in this, say, decade? >> well, yeah. obviously, every time something like this happens, like what happened in ukraine, we see volatility in the market and it's too bad for the consumer when that happens. you know, our country u.s. just can't, you know, can't be a true energy leader. as long as we hide behind a crude oil ban. we're going to have to free that up and we can't hoard our supplies of oil and gas in this
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country and be a true energy leader. there's countries over there that could benefit from what we have. >> do you think we have that much that it's okay for us to be able to start exporting now? >> well, i certainly do. you know, basically this country for the past 50 years has been underdeveloped. we've been living off everybody else's cheap energy in the world. so, yes, we have a lot of supplies here and certainly with the expansion that the technology of horizontal drilling is brought. you know, we've got a lot of tide oil coming on the market. and certainly with natural gas. 125-year supply, we've got enough to share. >> let's talk about continental. there are a lot of people who do not understand that at the same time oil has stayed up, you are finding more oil and you're finding it at -- for much lower prices. can you talk about it even since
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when we saw you in 2011 how much more oil there turned out to be and how much cheaper you're getting it out of the ground? >> well, at that time, for instance, in the bakken, we felt like about 50,000 wells was needed to develop that resource up there. now that number's double. we think it's about 100,000 wells that needs to be drilled up there to develop it due to the resource. obviously if the resource has grown since you and i talked up there in 2011. >> all right. now, also, i want to talk about how big is scoop, which is a new field that you hadn't even had when we were up there in 2011. >> well, we didn't. you know, we were drilling northwest at that time, of course, gas prices cratered after that. was cratering then, actually, and got worse. and so we had to pull back
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looking for the oil portion and that led us to the southeast area down there. and basically near what the -- we call the south-central oklahoma oil province, those counties in oklahoma produced more oil than any other counties. and certainly it's been rewarding, you know. the neck area, we're heavily developing that right now. and it's making some great wells and it's very oily. and that's what makes it work so well. >> how's the infrastructure coming to get the oil from the bakken, for instance, to where it could be used most. because it is the cleanest oil in the world as i understand it. that's what you told us and turns out to be true. >> well, it's certainly got gasoline and diesel and kerosene. the middle that's needed so much. and it's lowered the prices to the consumer's result. the infrastructure, you know, slower and slower to develop.
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you know, the proposal of xl and delay and permitting that's occurred has been terrible situation. that was supposed to carry about 300,000 barrels out of there. and you know, that hadn't been approved yet. so once that was on the books, though, basically nobody else would step in and fill that void that need. so there have been a lot of oil going rail and about 70% shipped out of there has been by rail. in scoop in oklahoma, we have all the pipelines we need virtually. so we've got the infrastructure here. and, you know, we're waiting on some infrastructure up there in the bakken. >> one last one. in your earnings, in your presentation to analysts, you've been saying that you are ears back in antelope. what does that mean? >> well, there was an area there that was slow to develop due to lease sales, primarily federal leases.
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and some state leases and so it took them time. but it's right in the main part of the bakken, the very best part. and what we call antelope area. and it's a large, undeveloped area and we're all over it. and ears back means, you know, like running a horse to the barn. it's ears back, we're doing all we can to get developed quickly. >> well, you completely delivered far better than anyone else other than you -- you knew, you knew, others doubted, they were wrong, you were right. chairman ceo of continental resources, thank you for coming on "mad money." >> hey, jim, always good to be with you. thank you. >> growth stocks go higher. whether they be in biotech or whether they be in oil. continental resources is a great growth stock. stay with "mad money."
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so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch -- up to $423. call... today. liberty mutual insurance. responsibility. what's your policy? i'm a big believer in the idea of shrinking to grow. i like when companies spin off divisions not doing as well as the core business or have lots of cyclicality. and therefore keeping back an enterprise with secular growth. meaning it doesn't need the economy to roar in order to make the numbers. we've seen these corporate divorces create value again and again as diverse as tobacco, to mismatch conglomerates like tyko and fortune brands.
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spinning off commodity businesses to bring out the value of the parent company. but just like in real life, not every divorce is a good thing. some, in fact, are potentially disastrous. and i fear such is the case with darden's decision to spin off or sell red lobster leaving other restaurants to remain as new darden. this plan, partially reaction to investors calling to the company to bring out value would create a viable but slow-growing mismatch of restaurants and another company would barely be able to stay afloat. if new darden were able to load up the spinoff with debt in order to fund the olive garden turn around, then i think the possibility of this spinoff just plain failing might be the most likely scenario. darden used to be one of the great growth performers in the restaurant business. it's combination of the fast-growing olive garden, red lobster along with steak joints like the basic long horn the high-priced capital grill, as
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well as bahama breeze. but somewhere along the line, i don't know where, i just don't know. the whole chain -- the whole chain went astray. yesterday, the company flushed out the recovery plan but at the same time preannounced hideous names. horrendous sales figures, minus 5.4% for olive garden, negative 8.8% for red lobster. management plan is simply a terrible admission that it has no idea what to do with red lobster, no ability to turn it around as it's tried mightily over the years. and instead, just wants to off load it on to what no doubt will be an unsuspecting public. it's not like olive garden's burning up the joint with terrific numbers, either. looks good by comparison to the heinous performance of red lobster. no wonder they're furious. one of them is the head of barrington capital announcing he
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is, quote, lost all confidence in the ability of clarence otis to run the company, the ceo. to me it's a wonder that darden's board doesn't feel the same way. performance was good for some time, but now, the company seems hopelessly left behind by outfits like chipotle and panera. or even by relatively similar outfit like brinker, the owner of chile chili's. much more, much better than olive garden and red lob. the plans we saw yesterday to turn around olive garden hardly inspired anyone. no reason to think it'll happen. darden doesn't need to break up with red lobster, needs to break up with the ceo. it's time for a new garden to try to fix these places, not just throw away one in attempt to turn around the others. why not give someone new a chance before taking drastic action. this isn't addition by subtraction. it's just plain old subtraction, and real bad math at that. stay with cramer.
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[ banker ] sydney needed some financial guidance so she could take her dream to the next level. so we talked about her options. her valuable assets were staying. and selling her car wouldn't fly. we helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today...and tomorrow. so let's see what we can do about that... remodel. motorcycle. [ female announcer ] some questions take more than a bank. they take a banker. make a my financial priorities appointment today. because when people talk, great things happen. i want to thank all my friends at union county for treating me so well when i had jury duty today. and the judge, the lawyers, but
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most importantly all the prospective jurors. we had a great time. and i did the civic duty and liked it. i'd like to say there's always a bull market somewhere and i promise to try to find it for you here on "mad money." i'm jim cramer and i'll see you tomorrow. edition beginning right now. >> good evening, i'm larry kudlow. this is the "kudlow report." we're live at p.m. eastern and 4:00 p.m. pacific. it was the best day of the year for the dow. markets in rally mode as ukraine